All relevant information on UIC Strategic Management Accounting & Controls (ACCT7310) will be posted on this webpage.

Click to go directly to: (1) Updates, (2) Assessment information, (3) Downloads, (4) Lecture review, (5) Course Outline and Lecture Notes, or (6) Course Details.

 

 

 

 

UPDATES

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Please check here for updates during the semester:

December 4, 2019	More information on the assignments and group project is provided in the Assessment secion below.
December 9, 2019	Due to our classroom change for Monday December 16, the assignment 1 presentation and report will be due on Monday December 23 instead.
December 9, 2019	Our class on Monday December 16 will be held in classroom T7-501 instead of our normal classroom.
December 9, 2019	I will be preparing a reading pack for the next topic of SMA tools which I will upload here before next Monday, please check back to download and print for next class.
December 13, 2019	New PPT and reading pack is available in the DOWNLOADS secion below.
December 14, 2019	Two more sets of new PPTs and reading packs are available in the DOWNLOADS secion below.
December 16, 2019	Please see notes from today's class on content and formats and other information of what are required for next week's Assignment 1 submission.
December 17, 2019	Please feel free to email your Assignment 1 draft presentation summary or report for feedbacks before class next Monday.
January 3, 2020	The 05 SMA Tools Reading Pack with highlights is now available in the DOWNLOADS secion below.
January 7, 2020	Many of the notes and some of the research papers have been updated with highlights for more focused reading, they are now available in the DOWNLOADS secion below.
January 27, 2020	As UIC has decided to commence classes on Monday February 17 the earliest and the remaining timing of the course and exam schedule had not been set yet, I have updated additional articles on Current Topics that you can read within the coming weeks. In addition, all the readings have been uploaded with highlights for your reading and they are all available in the DOWNLOADS secion below.
February 3, 2020	Due to the coronavirus, the course schedule is being re-arranged and I will keep you updated. For now, we will continue with our reading offline by following the course progression. As such, for this week please finishing reading (1) the notes on pricing strategies and risk management (we finished at price discrimination in the last class on January 13 before our mid-term), (2) the three research papers / articles on Topic 3 Advanced SMA and risk management tools, especially the paper on calculating the value of a customer, and (3) the notes on Topic 4 on Control which is mainly variance analysis. All these readings are in the DOWNLOADS secion below. We are arranging some form of online lecture and I will post further notice once that is set up.

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ASSESSMENT INFORMATION

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ALL in-class quizzes, assignments, projects and presentations, test, mid-term test, and final and supplementary examinations are, unless specifically indicated, INDIVIDUAL effort, meaning that you should work on your own material and any unscholarly actions prohibited by the school must be avoided.

I will post ALL relevant course materials, updated information, correspondences, and relevant student questions in the UPDATES and DOWNLOADS section on this page. Students are responsble to check the UPDATES section frequently on their own to ensure that they are up-to-date.

The final grade for this course is based on the following components:

Class participation	10%
Assignments and presentations	15%
Group project and presentation	25%
Midterm test	10%
Final Examination	40%
	100%

Below is a summary of the marking of each component.

Class participation (10% of total). Class participation marks are based on, amongst others, class attendance, class participation and discussions, and preparation for class. Some of the marks might also be based on pop quizzes, practice questions, or group work that might be provided during class.

Assignments and presentations (15% total, two assignments at 7% and 8% each). There will be two 15 minutes group presentations and not more than 5 page written reports on strategy and management accounting tools or controls on a firm of their choice.

Assignment and presentation #1 (7% of the total). (a) Students should form groups of about 4 students, and this group would work together for Assignment #1, Assignment #2, and the group project and presentation. (b) Each group should select a company of its choice, preferably a company whose products or services are of interest to each group members as it would be easier and much more beneficial. (c) Each group should perform a strategic analysis of its company on its current strategic position using, but not limited to, frameworks including PESTEL, SWOT, 5 forces, value chain analysis, product life cycle, BCG matrix, Ansoff matrix, amongst others. (d) Prepare an executive summary of not more than 5 pages of your strategic analysis, and (e) Provide a not more than 15 minutes presentation to the class on your finds (both due Monday December 23).

Assignment and presentation #2 (8% of the total). (a) Using the strategic analysis in Assignment #1, each group should evaluate all the tools (on management accounting, strategic management accounting, decision making, control, and performance evaluation tools) from this course and provide information on how can be used within their companies. (b) Each group should also prepare any tools to measure and evaluate any non-financial performance in details. (c) Prepare an executive summary of not more than 5 pages of your tools and their applications, and (e) Provide a not more than 15 minutes presentation to the class on these tools (both due Monday February 10).

Mid-term test (10% of total). The midterm test will be held on Monday January 13, 2020 from 1 to 3 pm covering Topics 1 to 6 under general concepts and strategic decision making.

Group project and presentation (25% of total). (a) For the group project, we will come up with 2 to 3 realistic and feasible new strategic directions for the company from the Assignments. (b) Based on these new strategic directions, each group should prepare applicable control and performance measurement tools (both financial and non-financial) that the firm can use. (c) Prepare a summary report of not more than 10 pages outlining the new control and performance measurement tools, and (d) Provide a not more than 20 minutes presentation to the class of these tools. (e) The presentation for the group project will be held on Monday March 2, 2020 and the group project report will be due on the same day at 5 pm via both soft and hard copy.

Final examination (40% of total). The final exam will be held on Tuesday March 10, 2020 from 1 to 4 pm covering all materials covered during the course.

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DOWNLOADS

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Administrative: course teaching plan || assessment rubrics

Reseach papers and articles:

Topic 1 What is SMA? 01 What is SMA (see class notes for highlighted version)

Topic 2 Strategy and value creation: 02 Strategy value creation (see class notes for highlighted version)

Topic 3: Basic MA tools: 03 Basic MA Tools PPT || 03 Basic MA Tools Reading Pack (see class notes for highlighted version) || ABC motorcycle example

Topic 3: Decision Making tools: 04 Decision Making Tools PPT || 04 Decision Making Tools Reading Pack (see class notes for highlighted version)

Topic 3: SMA tools: 05 SMA Tools PPT || 05 SMA Tools Reading Pack || 05 SMA Tools Reading Pack wtih Highlights (see class notes for highlighted version)

Topic 3: Advanced SMA and risk management tools: 06 Advanced SMA Tools and Risk Management PPT || 06 Advanced SMA Tools and Risk Management Reading Pack highlighted (REVISED JAN 7) || Gupta & Lehman 2003 highlighted (REVISED JAN 7) || Guerreiro 2008 highlighted (REVISED JAN 7) || Generation Z highlighted (REVISED JAN 7)

Topic 4 Control: control notes highlighted (NEW JAN 7) || Shields & Shields 1988 highlighted (NEW JAN 8) || Jensen 2001 highlighted (NEW JAN 8) || Clinton & Hunton 2001 highlighted (NEW JAN 8) || Otley 1999 highlighted (NEW JAN 8) || Chenhall 2003 highlighted (NEW JAN 10) || Birnberg 2007 highlighted (NEW JAN 10) || Melville 2004 highlighted (NEW JAN 11) || Marcus & Pfeffer 1983 highlighted (NEW JAN 11)

Topic 4 Performance measurement: performance measurement notes || performance measurement highlighted (REVISED JAN 7)

Topic 5 SMA working or not? Kim 2007 highlighted (NEW JAN 8) || Shank 1989 highlighted (NEW JAN 8) || Shah 2011 highlighted (NEW JAN 8) || Cinquini 2007 highlighted (NEW JAN 8)

Topic 6 Current topics and new issues: non-profit related reading pack (NEW JAN 27) || 10 insights on digitizaton highlighted (NEW JAN 27) || winning operating model for digital strategy hightlighted (NEW JAN 27) || bridging gap between human and AI highlighted (NEW JAN 27) || IoT value mapping executive summary highlighted (NEW JAN 27) || IoT value mapping full article (NEW JAN 27) || China digital transformation executive summary (NEW JAN 27) || China digital transformation full article (NEW JAN 27)

Topic 7 SMA in China: Islam 2005 highlighted (NEW JAN 8) || Li & Tang 2009 highlighted (NEW JAN 8) || Lin & Yu 2002 highlighted (NEW JAN 8) || Wu 2007 highlighted (NEW JAN 8) || Zheng 2012 highlighted (NEW JAN 13)

Marked class notes:

2019-12-02: Class notes marked 2019-12-02 || What is SMA marked 2019-12-02 || Strategy value creation marked 2019-12-02

2019-12-09: Class notes marked 2019-12-09 on SMA, value creation and strategies

2019-12-16: Class notes 03 Basic MA Tools marked 2019-12-16 || 03 Basic MA Tools Reading Pack marked

2019-12-23: 04 Decision Making Tools Reading Pack marked

2019-12-30: 04 CVP Margin of Safety || 04 CVP || ABM Marked || BPR Marked || Target Costing Marked

2020-01-06 Class notes 2020-01-06 || CVP examples || Life Cycle Costing || Quality || Lean, HR, Environmental Accounting

2020-01-13 Class notes 2020-01-13 || Pricing Strategies

 

 

 

LECTURE REVIEW

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A summary of our discussion during the lecture:

December 2, 2019	We went through the following topics on SMA and strategies today:
	course logistics, nature and characteristics of SMA, comparison between financial accounting and management accounting, and introduction to strategies.
	Today's marked notes can be found in the DOWNLOADS section.
December 9, 2019	We went through the following topics on SMA, value creation, and strategies today:
	summary review of SMA, value creation, and strategic analysis.
	Today's marked notes can be found in the DOWNLOADS section.
December 16, 2019	We went through the following topics on strategies, MA tools, and SMA tools today:
	assignment 1 presentation summary and report requirements, BGC matrix, Ansoff matrix, acquisition to grow, strategic analysis on China lithium battery automobile, cost allocation basics, absorption costing, job costing, process costing, ABC, and TDABC.
	Today's marked notes can be found in the DOWNLOADS section.
December 23, 2019	We went through the following topics on SMA tools today:
	presentation for Assignment 1 on current strategic position of Disney, Huawei, Nio, Supreme, and Xiaomi, relevant costs, and short term decisions.
	Today's marked notes can be found in the DOWNLOADS section.
December 30, 2019	We went through the following topics on SMA tools today:
	feedback on Assignment 1 reports, summary of short term decision making tools, CVP application, when to use relevant cost and CVP analysis, ABM, BPR, and target costing.
	Today's marked notes can be found in the DOWNLOADS section.
January 6, 2020	We went through the following topics on SMA tools today:
	midterm coverage review, CVP review and examples, life cycle costing, quality basics, concepts, and views, quality approaches like TQM, JIT, Kaizen, continuous improvement, quality circles, cost of qualities like prevention, appraisal, internal failure, and external failure costs, quality, quality control, quality assurance, and quality management system lean manufacturing, HR management, and environmental accounting using input / outlow analysis, flow cost accounting, activity-based costing, and lifecycle costing.
	Today's marked notes can be found in the DOWNLOADS section.
January 13, 2020	We went through the following topics on advanced SMA tools today:
	introduction to advanced SMA tools, pricing decisions and role of SMA based on general nature of the product, price elasticity of demand, price strategies, cost-plus pricing and advantages and disadvantages, marginal cost-plus pricing and advantages and disadvantages, market skimming pricing and when applicable, market penetration pricing and when applicable, complementary product pricing, product-line pricing, volume discount, price discrimination and requirements, and midterm test.
	Today's marked notes can be found in the DOWNLOADS section.

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COURSE OUTLINE AND LECTURE NOTES

This course outline is tentative and subject to change based on our progress.

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Week 1	TOPIC 1 WHAT IS CMA?
December 2, 2019
9:00 am to 12:30 pm	Strategic management accounting
	What is SMA
	TOPIC 2 STRATEGY AND VALUE CREATION
	Strategic formulation
	Strategy value creation
Week 2	Strategic implementation and feedback, strategic positioning
December 9, 2019
	TOPIC 3 SMA TOOLS
	Relevant costs and revenue analysis
	Chapter 12, Garrison
Week 3	Cost analysis, value analysis
December 16, 2019	short term decision making notes || SMA tools || Chapter 2, 3, Li
	Due to previous room booking, our class will be held in T7-501
Week 4	Pricing decision and profitability analysis
December 23, 2019	Gupta & Lehman 2003 || Guerreiro 2008 || Generation Z
	Assignment 1
Week 5	Capital investment
December 30, 2019	Chapter 13, Garrison || NPV risk management notes
Week 6	Decision making under uncertainty
January 6, 2020
Week 7	TOPIC 4 CONTROL AND PERFORMANCE MEASUREMENT
January 13, 2020
	Responsibility accounting
	performance measurement notes || Performance measurement || Shields & Shields 1998
	Midterm
Week 8	Management control process:
February 3, 2020	Organizational control, performance measurement, management compensation, strategic planning and budget preparation
	Jensen 2001 || Clinton & Hunton 2001 || Chapter 11, Garrison || Chapter 9, 10 Li
Week 9	Management control system, environmental uncertainty and organizational strategy
February 10, 2020	Design of accounting information systems
	Otley 1999 || Chenhall 2003 || Birnberg 2007 || Melville 2004 || Marcus & Pfeffer 1983
	TOPIC 5 SMA WORKING OR NOT?
	SMA being used and working?
	Kim 2007 || Shank 1989 || Shah 2011 || Cinquini 2007
	Assignment 2
Week 10	TOPIC 6 CURRENT TOPICS AND NEW ISSUES
February 17, 2020
	Current topics and new issues
	McKinsey Global Institute || McKinsey & Co
Week 11	TOPIC 7 SMA IN CHINA
February 24, 2020
	Management accounting in China
	Islam 2005 || Li & Tang 2009 || Lin & Yu 2002 || Wu 2007 || Zheng 2012
Week 12	Revision and group project presentations
March 2, 2020
March 10, 2020	Final Examination 1 to 4 pm

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COURSE DETAILS

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Course	Strategic Management Accounting & Control (ACCT7310), TrimesterII (2019-2020)
Prerequisites	Nil
Time and Location	Mondays 1 to 4:30 pm at T2-306 (except for December 2 from 9 am to 12:30 pm)
Instructor	Dr. Thomas Wu
Office	T1-302-R3
Office hours	By appointment only
Email	thomaswu@uic.edu.hk
Website	http://www.drthomaswu.com (all information for this course can be found here)
Teaching Assistant	Ms. Becky Jiang
Office	T1-302-R2-H2
Email	huanhuanjiang@uic.edu.hk
Telephone	3620472, ext 8472
Aims and Objectives	This course aims to provide students with an understanding of strategic management accounting. It examines the strategy formation processes, including data gathering structures and SWOT analysis. Performance measurement within the strategic management process will also be examined. This course also aims to provide an understanding of the management control systems as well as the use of management accounting information in business financial decision-making process. Particular attention is given to the management control environment and process.
Notes to Students	1. Students are advised to pre-read the assigned material before each class.
	2. Students are expected to participate actively in class discussions, ask relevant questions, and share their views.
	3. The use of the Chinese version and/or the photocopied version of the textbook in class is disallowed.
	4. It is highly recommended that students complete the assignments according to schedule.
	5. It is the students’ responsibility to seek help from their respective instructors and teaching assistants. To ensure that your instructor is available for consultation during your desired date and time, please make an appointment with the instructor in advance via email or whilst in class. Teaching assistants are available to help students during their office hours on a first-come, first-served basis. It is advisable that you make an appointment with the TA in advance as well. Please don’t wait till the last minute to obtain clarification on what you do not understand.
Required Textbook	Garrison, H. R., Noreen, E., & Brewer, P. C. Managerial Accounting (updated ed,). Boston: McGraw-Hill/Irwin.
References / Periodicals	References/Periodicals: 1. Brickley J. A., Zimmerman, J. L. & Smith Jr, C. W. (2009). Managerial Economics and Organizational Architecture (5th ed.). New York: McGraw-Hill Irwin. 2. Drury, C. (2008). Management and Cost Accounting (7th ed.). London: Thomson Learning. 3. Drury, C. (2009). Management Accounting for Business Decision (4th ed.). London: Thomson. 4. Horngren, C., & Datar, S. (2015). Cost accounting: A Managerial Emphasis (15th ed.). Pearson Publishing 5. Islam, M., & Kantor, J. (2005). The development of quality management accounting practices in China. Managerial Auditing Journal, 20(7), 707-724. 6. Li, WS. (2018). Strategic Management Accounting with Case Studies. Springer 7. Lin, Z. J., & Yu, Z. (2002). Responsibility cost control system in China: a case of management accounting application. Management Accounting Research, 13(4), 447-467. 8. Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Information technology and organizational performance: An integrative model of IT business value. MIS quarterly, 28(2), 283-322. 9. Merchant, K. A., & Van der Stede, W. A. (2011). Management Control Systems: Performance Measurement, Evaluation and Incentives (3rd ed.). Harlow; New York: Financial Times Prentice Hall. 10. Otley, D. (Ed), Association, M., Soin, K. (Ed) (2014). Management Control & Uncertainty. Palgrave Macmillan. 11. Sizer, J. (2000). An Insight into Management Accounting (3rd ed.). Harmondsworth: Penguin. 12. Wetherbe, J. (2008). Information technology for management: Transforming organizations in the digital economy. 13. Wu, J., Boateng, A., & Drury, C. (2007). An analysis of the adoption, perceived benefits, and expected future emphasis of western management accounting practices in Chinese SOEs and JVs. The International Journal of Accounting, 42(2), 171-185. 14. Zimmerman, J. (2014). Accounting for Decision Making and Control (8th ed.) McGraw-Hill. Other References: Various professional articles and academic journal including Financial Management, Strategic Journal of Management, Accounting Review, Management Accounting Research, Accounting, Organization, and Society.
Teaching Method	The course consists of class lectures and tutorials. Students should attend all lectures and tutorials. Attendence will be taken and there is a required minimum attendence level. Students should have read and be familiar with assigned readings and related materials before class. Students should also work through practice questions and be familiar with the use of a financial calculator.
Grading Policy	All university policies concerning acceptable student behavior apply for this course. In particular, unscholarly actions prohibited by the university should be avoided to prevent regretable results from these actions.

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